I recently relocated to St. Louis, Missouri.
Sooooo many properties within the city limits are abandoned, boarded up or are being purchased by wealthy individuals who purchase the property, tear the building down and are putting up tons of luxury row houses (Gaslight Square) http://www.urbanstlouis.com/gaslightsq_homes.html near the Central West End (CWE) http://www.slfp.com/CentralWestEnd.html I tell you its beautiful and amazing.
I’m one of those poor bastards that just can’t get a hold of how to purchase one of these cheap properties ($5k - $30k) and fix it up. :banghead
Unfortunately, i’ve been told that the term “Flip” is non existant in today’s market here in Missouri, cause you have to hold onto the property for at least 2 months before you can sell it. WTF?
After I purchased all these books and R.E. programs while living in expensive New England, now I come to the inexpensive mid-west and fizzle out. :bs
Okay, so my questions here are:
- how the heck can I purchase a property with no money and great credit? (sounds like "We buy homes cheap)
- how can I purchase a run-down, boarded up property (same scenario) and get it fixed up and sell it? (no money remember)
I’ve heard about the FHA 203k (or something like that), anyone get one?
I want to actually purchase a mixed-use property and a commercial building for artist lofts…are there any programs to help me do this within this VERY POOR, working class, 90%, African-American community? :deal and i’m african-american :banghead
Would love to hear from of the successful investors and newbies who’ve done it and made a nice profit!
Thanks REI folks
Sounds to me like a “Hard Money Lender” (HML) would be something to look into. There is a separate forum on this website for HML.
with a low price level like that I would try owner financing rather than pay HML prices. Work out payments with the owners and put your rehab expenses on Home Depot cards.
Check out our latest rehab, Hat Trick House , 45% ROI.
thank you both for responding! :cool
I also thought of the hard money lender (I looked at that list) and I thought about the FSBO.
Now, recall the homes that I’ve mentioned are abandoned and boarded up properties.
How would I be able to get a FSBO with something like those properties?
easy. Track down the owner from the tax rolls. We always first try and look up their phone number because its always better to speak on the phone rather than send a letter. Once you find the owners mailing address for their property taxes call 411 and see if you can get their number. If that fails you will have to send a letter. Try and make it as personal as possible, handwritten in a plain envelope. You want to appear local and tell them you want to buy the house. Dont mention owner financing until you get them to meet you a the property. Once you get them there and do a walk through be preparred to make them an offer quickly. You need to run your comps before you even contact them. Maybe even bring your contractors over there to get ballpark rehab budget nailed down.
You should also first figure out if they own it free and clear. If thats the case tell them you’ll pay top dollar if they will finance you for 2 years and then you’ll promise to refi so they can cash out. You will have it sold by then hopefully so this is the plan. Work out the sales price, pay them 8% interest or something and sign the contract.
You should identify about 20 houses that work for you and start this process on all of them. If you tie some up under contract and dont want them, wholesale them to other investors. Just make sure you get anything for dirt cheap.